Asos profits edge up as UK sales soar 27% and new boss adapts to life at the helm

Profits at fashion group Asos have edged up after sales in the UK soared 27 per cent in the year to August.

The online retailer said profits rose 1 per cent to £47.5million from £46.9million the previous year, after overall sales increased by 17 per cent to £1.12billion. Overseas sales were up 11 per cent and margins also increased.

Asos looks like it has steadied the ship after issuing three profits warnings last year. Last month the firm's founder and former chief executive Nick Roberstson resigned from the top job after 15 years at the helm.

Edging up: UK-based online fashion retailer Asos has seen profits edge up 1 per cent to £47.5million in the year to the end of August, compared to £46.9million the previous year

'The stock, which has declined from a high of £42, has started to recover from September’s low of £25.

'The company is now of a meaningful size with sales forecast at over £1.3bn in FY2016, has relatively strong cashflow and a ‘state of the art’ logistics infrastructure.

'Earnings, however, have declined over the last two years and although they are set to improve in the current year, the improvement in momentum, we believe, is priced into the stock.

'The departure of Nick Robertson as Chief Executive, who was the ‘guiding light’ of the business, is an added concern. The stock remains highly valued at 54.5x our FY2016 fully diluted earnings forecasts.'

In June 2014, a warehouse fire damaged 20 per cent of the company's stock and forced it to stop accepting orders for two days.